Bengaluru may see residential property prices going up in the coming quarters by 15-20 percent, even as demand picks up for both affordable and luxury segments in the city.
The commercial segment in the city has been impacted, as there was no new leasing In the last three months, according to CREDAI Bengaluru president Kishore Jain.
In an interview to CNBC-TV18, Jain said, as of now, prices are stable and there has been no reduction. However, several developers are looking at hiking prices over the next few quarters, citing rising input costs and a glaring labour shortage.
"Residential demand is picking up for affordable and luxury segments in Bengaluru. Quality of site visits have improved since we are only seeing serious buyers venturing. Earlier, 2 or 3 out of ten site visits would turn into prospects, but we are seeing that number now go higher to 4-5," Jain told CNBC-TV18.
Even while some other cities are seeing discounts on real estate prices, Bengaluru has seen no reduction in prices in any segment, Jain said, "In fact, many developers are looking to hike prices by 15-20 percent in next two quarters."
"Input costs are increasing and there is a big labour shortage,” Jain said, adding that he does not expect to see new launches of projects at least for the next two quarters.
The Confederation of Real Estate Associates (CREA) also told CNBC-TV18 that rental prices were stable in Bengaluru at pre-COVID levels and are not seeing a drop.
Demand for rentals has also picked up, and should go to pre-COVID levels soon, said Pradeep Joe, president of the association in Bengaluru.